Correlation Between Identiv and Cobas Global

Can any of the company-specific risk be diversified away by investing in both Identiv and Cobas Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Identiv and Cobas Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Identiv and Cobas Global PP, you can compare the effects of market volatilities on Identiv and Cobas Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Identiv with a short position of Cobas Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Cobas Global.

Diversification Opportunities for Identiv and Cobas Global

-0.09

Correlation Coefficient

Identiv  Cobas Global

Good diversification

The 3 months correlation between Identiv and Cobas is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Cobas Global PP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cobas Global PP and Identiv is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Identiv are associated (or correlated) with Cobas Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cobas Global PP has no effect on the direction of Identiv i.e., Identiv and Cobas Global go up and down completely randomly.

Pair Corralation between Identiv and Cobas Global

Assuming the 90 days trading horizon Identiv is expected to under-perform the Cobas Global. In addition to that, Identiv is 4.61 times more volatile than Cobas Global PP. It trades about -0.04 of its total potential returns per unit of risk. Cobas Global PP is currently generating about 0.14 per unit of volatility. If you would invest  12,383  in Cobas Global PP on December 24, 2024 and sell it today you would earn a total of  805.00  from holding Cobas Global PP or generate 6.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Identiv  vs.  Cobas Global PP

Identiv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Identiv has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Cobas Global PP

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cobas Global PP are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unfluctuating basic indicators, Cobas Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Identiv and Cobas Global

The main advantage of trading using opposite Identiv and Cobas Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Cobas Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cobas Global will offset losses from the drop in Cobas Global's long position.

The idea behind Identiv and Cobas Global PP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.